Buy-to-let mortgage market improves for limited company landlords

Lenders have added products and lowered rates for the growing number of limited companies set up to manage buy-to-let properties.

There are now more than double the number of two- and five-year fixed buy-to-let mortgage deals for limited companies available compared to two years ago, according to Moneyfactscompare.co.uk.

At the start of October, there were 776 two-year fixed deals and 954 five-year options, compared to 295 and 546 respectively in October 2023, which means landlords operating through a limited company structure have many more deals to choose from.

Furthermore, these deals charge lower rates (on average) than in October 2023. The average two-year fixed rate has dropped from 6.53% to 5.04% over the past two years, while the average five-year fixed rate fell from 6.69% to 5.50%.

“Landlords may find it encouraging to see the cost of using a limited company buy-to-let has fallen over the past two years, thanks to falls to the Bank of England base rate and lower swap rates,” Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, explained.

“The future expectation for rate cuts remains uncertain, but it is hoped that lower borrowing costs could still encourage investors,” she added.

Find a buy-to-let mortgage for limited companies

To compare deals and find some of the latest rates, visit our limited company buy-to-let mortgage chart.

Or, if you want a standard buy-to-let mortgage, select the relevant option on our buy-to-let mortgage charts. 

Preparing for potential changes

The Renters’ Rights Bill, which is due to come into effect in 2026, will have a particularly significant impact on landlords as it will introduce new legislation around no-fault evictions, rent increases and health and safety standards.

These changes will be welcomed by tenants, but landlords will need to take steps to ensure they meet all the necessary requirements and are prepared for the upcoming changes.

As well as this near-confirmed legislation, there are also rumours of potential changes in the upcoming Autumn Budget on 26 November 2025 that could affect landlords.

For example, there have been reports in the news that the Government may expand National Insurance Contributions (NICs), so landlords have to pay this tax on their rental income. These landlord NIC changes, if announced, are likely to have a major impact on the profits of landlords and could affect the rents they charge and how they manage their properties.

“Unlike other reforms that gradually hit landlords, this could become a significant move to lead more landlords into setting up a limited company for their buy-to-let property portfolio,” Springall pointed out.

“It is essential landlords seek independent advice to ensure they are as prepared as possible for any fundamental changes that may be announced in the coming months,” she urged.

See our guide to read more on the taxes landlords may need to pay.

Still a “booming” buy-to-let market

A growing number of landlords have set up limited companies to manage their buy-to-let property portfolios after changes to tax relief in 2020. Even though the current system of replacing tax relief with a tax credit of 20% of your mortgage interest payments has been in place for several years, many landlords are continuing to see the benefits of incorporating as a limited company.

For example, 33,598 buy-to-let limited companies were set up in the first half of 2025, according to research by Hamptons. In June alone, incorporations rose by 21% year-on-year.

A limited company structure can be particularly useful and tax-efficient for portfolio landlords who own multiple properties. And, with around 61% of applications to Fleet Mortgages coming from landlords with four or more properties, according to data from the lender, it seems a large proportion of landlords are committed to staying in the market, despite the recent challenges.

These figures suggest that “the buy-to-let market is still booming”, Springall commented, but cautioned that “there is a careful balancing act for landlords to both meet their desired profit margin, while also ensuring they charge their tenants fairly”.

“Ultimately, keeping valuable tenants and keeping properties occupied will be essential in the months ahead,” she concluded.

Speak to an award-winning mortgage broker today